Our goal is to help smokers lower the cost of smoking without losing the quality and taste of manufactured cigarettes.
Due to regulatory changes in the commercial Roll-Your-Own business, an opening was created to fill the void left when the retail shops closed their doors. Shag Tobacco Limited was created to provide the complete at-home RYO experience with cutting-edge cigarette rolling technology, auto-ship of flavor matched cigarette tobacco and tubes, and a compensation plan that pays affiliates to introduce the program to a few of their friends. You can now join us and capture your share of this exciting and growing market.
Roll-Your-Own (RYO) Regulation
In 2012 the federal government passed laws requiring retail machine based RYO shops to register as manufacturers and pay full federal taxes on all cigarettes produced, effectively killing off the business and eliminating competition for home-based RYO machines. Specifically:
26 U.S.C. 5702(d): “Manufacturer of tobacco products” means any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco . . .
“Such term shall include any person who for commercial purposes makes available for consumer use (including such consumer’s personal . . . use) a machine capable of making cigarettes . . . or other tobacco products.”
However, machines sold exclusively for use in the home are exempt from this rule:
“A person who sells a machine directly to a consumer at retail for a consumer’s personal home use is not making a machine available for commercial purposes if such machine is not used at a retail premises.”
However, the new law did require any tobacco that is to be used to make cigarettes to be taxed as RYO tobacco and not as pipe tobacco, even if it is so labeled.
Home RYO is also exempt under Title 26, Section 52 of the Internal Revenue Service Code:
(c) Tobacco products
“Tobacco products” means cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
(d) Manufacturer of tobacco products
“Manufacturer of tobacco products” means any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco, except that such term shall not include—
a person who produces cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco solely for the person’s own personal consumption or use.
Due to a recent law regulating online sales of tobacco products, this program will not be available to residents of Maryland. Each state levies its own taxes on RYO tobacco and the amounts vary widely. All state RYO taxes (if applicable) will be the responsibility of the affiliate and will be collected and submitted to the states as required by law.